Budget includes changes to Letting Relief and Universal Credit help
The Autumn Budget features changes to Letting Relief for landlords and additional funding to help people switching to Universal Credit.
The Chancellor announced changes to Private Residence Relief on Capital Gains Tax upon the sale of a property.
If they qualify for Private Residence Relief and have a chargeable gain, landlords may also qualify for Letting Relief, meaning they will pay less or no tax.
From April 2020, Lettings Relief will only apply when the owner of the property is in shared occupancy with the tenant, in other words it will be abolished for non-resident landlords, selling properties they had previously lived in.
As well as this, the final period exemption is also set to be reduced, from the current 18 months to 9 months, with the Government adding that they plan to consult on these changes.
However, there won’t be a change to the 36 months final exemption period, which is available to disabled people or those in a care home.
The Chancellor announced a package of additional measures, worth £1 billion over the next five years, to provide further protection to those switching to Universal Credit.
Mr Hammond said that the Secretary of State for Work and Pensions, Esther McVey will give further details of this later this year.
The Budget pinpoints these areas of extra support for claimants, as they make the transition over to Universal Credit.
In last year’s Budget, the Government said that Housing Benefit claimants would receive a fortnight’s worth of extra support during their transition to Universal Credit.
This year, the Government announced that this will be extended to cover the income-related elements of Jobseeker’s Allowance and Employment Support Allowance, as well as Income Support.
This is set to benefit around 1.1 million claimants and will be effective from July 2020.